Subsea Cable Market Size Report, Share and Trends 2030

[Research Report] The subsea cable market was valued at US$ 16.92 billion in 2022 and is expected to reach US$ 34.16 billion by 2030; it is estimated to record a CAGR of 9.2% from 2022 to 2030.

Analyst Perspective:

Growing demand for Internet and smartphones among consumers, increasing investments in new cable systems, and rising adoption of cloud technology are a few factors that drive the subsea cable market growth. Subsea cables are used to rapidly transmit huge amounts of data and connect various countries across the globe. However, growing cybersecurity attacks and the high cost associated with the installation of subsea cables hinder the market growth. Moreover, the growing need for data and communication flow is boosting the market growth worldwide. Also, the rising number of new projects related to installation of subsea cables is anticipated to create several new growth opportunities for the market during the forecast period.

Market Overview:

Subsea cables, also known as submarine cables, are long fiber optic wires laid on sea beds that connect two or more landing points. These cables are thousands of miles in length and are used for carrying telecommunication signals from one point to another. Subsea cables are essential components for the global telecommunication infrastructure such as connecting continents, internet cables, and facilitating worldwide communication. These cables are primarily used for distant data and communication transportation by permitting rapid transfer of data globally.

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Subsea Cable Market: Strategic Insights

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Market Driver:

Growing Internet Traffic Drives Subsea Cable Market

Increasing use of the Internet across the globe is driving the global market. According to the Atlantic Council, more than 97% of the global internet traffic depends on subsea cables, which is increasing rapidly. The world is connected through the Internet, and almost everyone heavily relies on it for managing their day-to-day activities, which increases the need for Internet services among consumers. According to the International Telecommunication Union (ITU), the world will have 5.4 billion Internet users by the end of 2023, which covers 67% of the world’s population that uses the Internet. There is rapid growth in the demand for fast bandwidth speed among consumers. Further, smartphone penetration across the globe is increasing owing to the rise in the number of internet users. For instance, per the GSM Association, there will be 5 billion mobile internet users across the globe by 2025, 8 billion smartphone connections by 2027, and 9.5 billion mobile connections by 2030. Thus, the growing adoption of smartphones boosts Internet traffic, which drives the growth of the global subsea cable market.

Report Segmentation and Scope:

The subsea cable market is segmented on the basis of type, voltage, offering, and application. Based on type, the market is segmented into single core and multi core. In terms of voltage, the market is categorized into medium and high. Based on offering, the subsea cable market is divided into installation services and maintenance & upgrade services. On the basis of application, the market is divided into communication and power. By region, the subsea cable market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

Segmental Analysis:

Based on offering, the market is bifurcated into installation services and maintenance & upgrade services. The maintenance & upgrade services segment is anticipated to develop at a significant pace during the forecasted period due to the high cost of cable installation. Maintenance and upgradation of subsea cables usually take less time (up to eight months) and are cheaper than new installations. Moreover, installed cables are a valuable asset for a nation, and the implementation of new technologies allows the user to use the original cable, both in terms of design and capacity.

Regional Analysis:

Asia Pacific held the largest subsea cable market share in 2022. The Asia Pacific market is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. The region contributes a noteworthy share to the global market owing to high adoption and investments in subsea cables in the region. The rising population in countries such as China and India increases the number of Internet users in the region, which is driving the market. About half of the global internet traffic is generated by consumers, mainly from Asia Pacific, which is fueling the demand for subsea cables. The rising need for faster internet services in the Transpacific region, due to the limited subsea communication cable in the region, encourages the governments to develop new cable systems in the region. For instance, in July 2023, Japan signed a Memorandum of Cooperation (MoC) with the European Union to develop subsea cables in the Arctic. These cables advance connectivity by speeding internet traffic across the globe and are expected to be operational by 2026.

Moreover, Asia Pacific is increasingly becoming a hub for direct investments in the subsea cable infrastructure. For instance, the Chennai-Singapore 3,200 km 4/6/8 fiber-pair cable system received an investment of US$ 100 billion from the governments of both countries to make the cable operational readiness in 2021. Additionally, many tech giants such as Google, Microsoft, and Facebook are partnering with subsea cable companies for the development of new projects. For instance, in January 2022, Google, as an investor, partnered with AARNet, Singtel, Indosat Ooredoo, SubPartners, and Telstra on a new subsea cable project connecting Japan to Australia via Guam.

Subsea Cable Market Regional Insights

The regional trends and factors influencing the Subsea Cable Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Subsea Cable Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Subsea Cable Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Subsea Cable Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Subsea Cable Market are:

1. Nokia
2. SubCom, LLC
3. NEC Corporation
4. Prysmian S.p.A
5. NKT A/S

Disclaimer: The companies listed above are not ranked in any particular order.

Key Player Analysis:

Nokia; SubCom, LLC; NEC Corporation; Prysmian S.p.A; NKT A/S; Furukawa Electric Co., Ltd.; Hengtong Group Co., Ltd.; Ciena Corporation; ZTT Cable; and JDR Cable Systems Ltd. are among the key subsea cable market players profiled in the report.

Recent Developments: 

The market players are widely adopting inorganic and organic strategies. A few recent key market developments are listed below: 

• In November 2022, Reliance Industries Limited received approval to deploy the world’s largest submarine cable connecting Singapore and Europe. The two submarine cables, India-Europe-Xpress (IEX) and India-Asia-Xpress (IAX), are expected to start operation between 2023 and 2024.
• In December 2022, Empresa de Telecomunicaciones de Cuba S.A. signed an agreement with Orange to integrate the Arimao project with the ARCOS-1 cable system in Cojimar, Cuba. The companies are also planning to make the project ready for service by the end of 2023.
• In October 2021, NEC Corporation announced that its subsidiary OCC Corporation collaborated with Sumitomo Electric Industries Ltd. to develop a four-crore-fiber-optic subsea cable for Facebook. This cable system increases the number of independent data channels by enabling next-generation subsea space division multiplexing (SDM) technology.